1. 2014 Legislative Update Minnesota Public Risk Management Association September 11, 2014 Anne Finn, Assistant Director, IGR Patrick Hynes, Intergovernmental Relations Counsel League of Minnesota Cities

2. Outline  2014 Session Overview  Employment Law  Data Practices  The Civil Law “Junk Drawer”  Questions

3. Employment Law Women’s Economic Security Act (WESA)Minimum WageJoint Powers Entity Creation and Employee ProtectionPERBConfidential EmployeesMiscellaneous Employee Regulations

4. Establishes Unemployment Insurance Eligibility in Cases of Sexual Assault and Stalking (Minn. Stat. § 268.095) Increased from 6 to 12 weeks Start of leave can be within 12 months of birth or adoption (increased from 6 weeks) Pregnancy and Parenting Leave (181.941) Adds parents-in-law and grandchild to list of relatives for which sick leave can be used Safety Leave can be used in cases of sexual assault and stalking Sick and Safety Leave (181.9413) Women’s Economic Security Act (ch. 239)

5. Women’s Economic Security Act Familial Status (Minn. Stat. § 363A.08)  “Familial Status” is added to the employment provisions in the Minnesota Human Rights Act  Defined as the condition of one or more minors being domiciled with either  their parent or parents or the minor's legal guardian, or  the designee of the parent or parents or guardian with the written permission of the parent or parents or guardian. Reasonable Pregnancy Accommodations (Minn. Stat. § 181.9414) Requests like more frequent restroom, food and water breaks must be granted unless they are an unreasonable burden Nursing Mothers (Minn. Stat. § 181.939) A Room, other than a bathroom, must be made available, free from intrusion and with an electrical outlet

6. Minimum Wage (Ch. 166) $8.00 per hour beginning August 1, 2014 $9.00 per hour beginning August 1, 2015 $9.50 per hour beginning August 1, 2016 $6.50 per hour beginning August 1, 2014 $7.25 per hour beginning August 1, 2015 $7.75 per hour beginning August 1, 2016 “Large employer” is defined as having a budget of at least $500,000 (decreased from $650,000) Every large employer must pay employees a rate of at least: Every small employer must pay employees a rate of: “Small employer” is defined as having a budget of less than $500,000

7. Joint Powers Entities & Bargaining Units (Ch. 223 – Minn. Stat. § 179A.60) Sets procedure when 2 or more gov’t units form a joint powers entity that will employ individuals who previously were union employees  Bureau of Mediation Services determines the appropriate bargaining unit for all employees  The bargaining unit of transferred employees is presumed to be appropriate unless BMS determines it inappropriate  BMS may approve alternative unit agreed to by all parties  Establishes a process to determine which existing union contracts will apply prior to execution of new contract Effective for entities established on or after January 15, 2015.

8. Joint Powers Entities & Bargaining Units (Ch. 223 – Minn. Stat. 179A.60)  Seniority: Based on continuous service with Joint Powers entity and member entity.  Layoffs and recalls based on seniority.  Decertification: No petition can be considered in the first year.  Data Sharing: Law provides for sharing of private and confidential data between member units and Joint Powers Entity. Note: Provisions prohibiting privatization of services, guaranteeing wages, and requiring retraining were removed during negotiations.

9. Public Employee Relations Board (PERB) (Ch. 211 – Minn. Stat § 179A.41) PERB Membership (3 Members) Governor appoints two members: One officer or member of exclusive representative of public employees one member represents public employers The two gubernatorial appointees appoint a third member, representing the public at large PERB will hear unfair labor practice charges under the Public Employment Labor Relations Act (PELRA)

10. Data Practices & The Open Meeting Law  Data Security  The “Timberjay” Bill  Checking Account Data  Social Media and the Open Meeting Law  Data Practice Compliance Resources

11. DATA SECURITY (CH. 284)  Introduced in 2013 largely in response to DVS data breach litigation and news reports  Applies a number of provisions in Minn. Stat. § 13.055 that previously applied only to state agencies  New requirements apply to ALL private data  Effective Date: August 1, 2014

12. DATA SECURITY: Procedures Minn. Stat. 13.05, sud. 5  Existing statutory safeguard requirements must now also include ... procedures for ensuring not public data are accessible only to persons whose work assignments reasonably requires access to the data and that  not public data is only being accessed by those persons for purposes described in the procedures

13. DATA SECURITY: “Investigation of Data Breaches” Discovery or Notice of Data Breach Written Notice to subject of breach stating: Investigation and report will be prepared, and Instructions on how to access report and right to have it delivered

14. DATA SECURITY: “Data Breach Reporting” Upon final disposition of disciplinary action, a report on a breach must include, at a minimum: Description of the type of data improperly accessed Number of individuals whose data was improperly accessed If there was disciplinary action taken, the name of each employee who improperly accessed the data; and Final disposition of any disciplinary action taken

15. DATA SECURITY: “Personal Information” Personal Information defined in Minn. Stat. 325E.61, subd. 1 as A person’s first name or initial and last name stored in combination with Social Security Number; or Driver’s License Number; or Account Number or Credit Card Number WITH Password, security code, or access code IF: the data element is not secured by encryption or is secured with encryption key, password, or other means necessary for reading Cities must perform, At least annually, A Comprehensive Security Assessment of Any stored “Personal Information”

16. “Timberjay” Legislation (ch. 293) Response to Supreme Court holding in Helmberger v. Johnson Controls, Inc., 839 N.W. 2d 527 (2013) Minn. Stat. § 13.05, Subd. 11. Privatization. (a) If a government entity enters into a contract with a private person to perform any of its functions, the government entity shall include in the contract terms that make it clear that all of the data created, collected, received, stored, used, maintained, or disseminated by the private person in performing those functions is subject to the requirements of this chapter and that the private person must comply with those requirements as if it were a government entity. Supreme Court held that this was “simply a notice provision...” and the language does not impose “any direct, affirmative obligations...” Holding was contrary to a 2001 IPAD opinion (01-075), stating that 13.05 did create an affirmative obligation to comply with the MGDPA

17. “Timberjay” Legislation (ch. 293) Minn. Stat. § 13.05, Subd. 11. Privatization. (a) If a government entity enters into a contract with a private person to perform any of its functions, the government entity shall include in the contract terms that make it clear that all of the data created, collected, received, stored, used, maintained, or disseminated by the private person in performing those functions is subject to the requirements of this chapter and that the private person must comply with those requirements as if it were a government entity. All contracts entered into by a government entity must include a notice that the requirements of this subdivision apply to the contract. Failure to include the notice in the contract does not invalidate the application of this subdivision. 2 nd Big Question: What is a “government function”? (See, Justice Page’s dissent.) This language largely restores Minnesota to status quo ante. The big question is whether entities were aware of what status quo ante was.

18. Checking Account Data Laws 2014, ch. 208, amending Minn. Stat. § 13.37, subd. 1 Effective Aug. 1, 2014. “Checking account data” is now defined as Security Data in Minn. Stat. § 13.37, subd. 1. Security Data is defined as private data on individuals.

19. “The use of social media by members of a public body does not violate this chapter so long as the social media use is limited to exchanges with all members of the general public. For purposes of this section, email is not considered a type of social media.” Open Meeting Law and Social Media Use Laws 2014, ch. 274, creating Minn. Stat. § 13D.065 Effective Aug. 1, 2014.

20. Compliance : Information Policy Analysis (IPAD) (www.ipad.state.mn.us)www.ipad.state.mn.us

21. Data Practices Compliance: League of Minnesota Cities Free Webinar: “To Share or Not to Share: Data Practices Compliance”To Share or Not to Share: Data Practices Compliance September 18, 2014, 10 a.m. – 11:00 a.m. Register Here Seminar (Part Two): “Effectively Managing and Sharing Gov’t Data”Effectively Managing and Sharing Gov’t Data Date TBD Focus on New Laws: Data Practices Act Focus on New Laws: Women’s Economic Security Act (WESA)

22. CIVIL LAW “JUNK DRAWER” Passed Into Law  “ Responsible Contractors”  Indemnification Agreements  Registration of AEDs Did Not Become Law   Residential Sprinklers   Alternative Publication   Diversion programs

23. “Responsible Contractors” (Ch. 253 – Minn. Stat. § 16C.285) The contractor must :  Provide Certification under oath that it is a responsible contractor  Verify that all subcontractors it intends to use are responsible contractors  Provide a list of all subs it intends to use on a project with the bid and submit subcontractor verifications if requested The city bid must contain :   Definition of or reference to the responsible contractor statute   Statement that contractor failing to meet requirement is ineligible to be awarded contract   Statement that submitting false oath makes contractor ineligible and CAN result in termination of contract   Statement that contractor shall, upon request, provide certificates of all subcontractors on the project 1) Only a “responsible contractor” may be awarded public bids >$50k 2) A “responsible contractor” cannot have violated any of a long list of state and federal labor, wage, and safety laws, rules, and regulations

24. “Responsible Contractors” Effective January 1, 2015 and applies to contracts entered into based on solicitation documents issued on or after that date Protections for Cities : City may accept the sworn statement as sufficient to determine compliance and shall not be liable for awarding a contract in reasonable reliance on the sworn statement City is not liable for awarding or failing to award a contract based on a reasonable determination that the contractor failed to verify compliance or falsely stated compliance Nothing restricts the ability of a city to establish additional criteria for defining a responsible contractor

25. Indemnification Agreements & Design Professional Contracts Minn. Stat. § 604.21 defines “design professional contract” as any contract where a portion of work is to be performed by a professional licensed under Minn. Stat. 326B.02 (e.g., architects & engineers). Any provision purporting to indemnify, hold harmless, or defend the indemnitee from anyone other than indemnitor is void and unenforceable, EXCEPT: Prohibition does not apply to the extent the obligation to indemnify, hold harmless or defend is able to be insured. Any provision making the contract subject to the laws of another state or requires dispute resolution in another state is void. Applies to contracts for improvements to real property, highways, roads, or bridges located in Minnesota. Applies to contracts entered into on or after August 1, 2014.

26. Registration of Public AEDs Public Access AEDs Public AED is one intended by its marking or display to be used or accessed by the public who may be in the vicinity of the device. “Mobile AEDs” are exempted Must be registered A Registry must require a maintenance program. Examples include the following: Minnesota AED Registry; National AED Registry; iRescU; or A manufacturer-specific program Must have emergency response plan Plan must be appropriate for the nature of the facility the AED is intended to serve

27. Registration of Public AEDs Omnibus Health Bill, Ch. 291, Art. 8, sec. 27: Minn. Stat. § 403.51. Public Safety Agencies: An agency may, but is not required to, oversee compliance with the law, and may direct the removal of a public AED or signs if the device is not ready for immediate use. Required: Must be reasonably maintained and comply with manufacturer recall and safety notices. Registration must occur within 30 working days of obtaining the AED. Encouraged: The use of universal AED sign is encouraged, but not required. Civil Liability: The law does not create any civil liability on part of the owner, nor does it preclude civil liability under any other law. Effective August 1, 2014

28. Did Not Become Law Residential Fire sprinkler prohibition failed.  2012 State Building Code will require fire sprinklers in:  New Townhomes  New one-family homes > 4,500 sq. ft.  New two-family homes  Fire sprinklers NOT required for additions, alterations, or repairs of existing buildings 2012 SBC will go into effect Summer 2014

29. DID NOT BECOME LAW Alternative Publication Option Veteran’s Preference Hearing Changes Traffic Ticket Diversion Program Authorization License Plate Reader Data Classification Massage Therapist Regulation Labor Peace Agreement Requirements Special Service Districts for Mixed Use Properties Levy Limits Street Improvement Districts Agency rulemaking revisions

30. League of Minnesota Cities: Additional Resources Free Webinar: “To Share or Not to Share: Data Practices Compliance”To Share or Not to Share: Data Practices Compliance September 18, 2014, 10 a.m. – 11:00 a.m. Register Here Seminar (Part Two): “Effectively Managing and Sharing Gov’t Data”Effectively Managing and Sharing Gov’t Data Date TBD Legislative Action Center 2014 Law Summaries Focus on New Laws: Highlighting laws of particular interest to cities Focus on New Laws: Data Practices Act Focus on New Laws: Women’s Economic Security Act (WESA)

31. Questions? Contact IGR Staff Gary Carlson IGR Director gcarlson@lmc.org Heather Corcoran IGR Liaison hcorcoran@lmc.org Craig Johnson IGR Representative cjohnson@lmc.org Patrick Hynes IGR Counsel phynes@lmc.org Anne Finn IGR Assistant Director afinn@lmc.org Ann Lindstrom IGR Representative alindstrom@lmc.org Laura Ziegler IGR Liaison lziegler@lmc.org